If your company is based on the Chilean localization, you can run an enhanced version of the standard inventory valuation simulation report (for information about the standard report, see Inventory Valuation Simulation Report). The main differences in this enhanced version are as follows:
It lets you valuate each item on the basis of the valuation method in the item master data; that is, different items may be valuated using different valuation methods. Therefore, if you specify the common selection criteria for this report and for the inventory audit report identically, then the results of both reports are also the same. Alternatively, you can select any of the calculation methods offered in the classic report, for example, if you want to simulate one or more “what-if” scenarios.
You have the option to filter out inflation-based revaluations from the report. It is a requirement of IFRS not to include inflation-based revaluations in inventory valuation. Alternatively, if required by local GAAP, you can take inflation-based revaluations into account.
Recommendation
For local reporting, use the inventory audit report, not the inventory valuation simulation report.
The results of the inventory audit report are based on the existing records in the database, while the inventory valuation simulation report simulates the inventory value based on “what-if” scenarios.
Note
During simulation, you can create new inventory documents on another instance of the application.
The necessary configuration has been done in
: On the Inventory tab, Reporting subtab, the Enhanced Valuation Report, Including All Valuation Methods radio button has been selected.Open the selection criteria window by choosing
.The selection criteria window appears showing the same selection criteria as used in the last simulation, regardless of whether or not the simulation run ended with errors.
Specify the selection criteria:
Note This topic documents fields and other elements in this window that either are not self-explanatory or require additional information. End of the note. |
Calculation of the inventory values starts from the date the company was created and ends on the system To date you enter here. If you do not specify a date in the To field, the calculation ends on today's date. If you enter a date in the From field, this date affects only which results are displayed but not the time frame for the calculation. If you enter a posting date in the To field and run the report in Simulation mode, the application derives the latest system date for inventory documents with this posting date and bases the simulation on this system date. The results are as follows:
Example The company started in January 1, 2009. Today's date is June 21, 2010. Three goods receipts have been created today with the following posting dates:
In the selection criteria window, you specify Posting Date with June 18, 2010 as the To date. You then run the report in Simulation mode. Of the goods receipts posted today, only the one with the posting date June 18, 2010 is displayed in the results window. You now run the report in Display mode with the same selection criteria apart from the date: this time, you specify System Date with June 21 as the To date. In the results window, all three goods receipts created today are displayed. End of the example. Note If you want to run a simulation until today's date or continue a simulation performed yesterday or on another date in the past, remember to change the To date. End of the note. |
The projects you specify here affect only what data is displayed in the report, not the calculation of the inventory values. |
Specify the method by which you want the inventory values to be simulated. The method Based on Item Definition uses the valuation methods from the item master data. If you select the method Price List, the field Price Source appears in which you must select the required price list. |
The storage locations or warehouses you specify here affect only what data is displayed in the report, not the calculation of the inventory values. |
If you valuate transactions in a foreign currency, select one of the following:
|
If you select this checkbox and inventory revaluations due to inflation have been marked as such through selection of the checkbox Inflation-Based Revaluation in the Inventory Revaluation window ( ), SAP Business One does not take inflation-based revaluations into account in the simulation run. |
Displays the valuation in a foreign currency. By default the field is deselected and the results are displayed in local currency. If you select Additional FC for Total, an additional field is displayed in which you must select the required currency. You can then switch between the local currency and the selected foreign currency on the top left of the report results window. If you specify an additional currency, it is displayed the next time you open the report. |
Choose the Run button and the required simulation mode.
Specify one of the following modes for the simulation run:
If a simulation by another user is in progress, you cannot start a new simulation or continue an existing one. |
If you choose
or , the application checks the consistency of the inventory data on the database before it carries out the simulation run. If no issues are detected, the following information message appears at the bottom of the SAP Business One desktop: Inventory pre-checks completed successfully. Otherwise, the following happens:The following error message appears in the status bar: Inventory pre-checks failed; see SAP Note 1459327.
A log file appears in which you can see the individual errors, warnings, and information messages.
A dialog box appears in which you must respond to the following question: Pre-check queries reported errors. Do you want to continue?
Recommendation
If the pre-check finds errors, request assistance from your partner to run the inventory valuation utility in the remote support platform for SAP Business One before you run the inventory valuation simulation report.
To stop the simulation and return to the selection criteria window, choose the No button. To run the simulation despite the errors, choose the Yes button.
In the Inventory Valuation Simulation Report window, use the Expand button to view the details.
The following information is provided to help you interpret the report results:
Each item's last evaluated price is updated with the item cost from the simulation. This applies not only to the items displayed but to all simulated items. If the calculation method for an item was moving average price, the last evaluated price = cumulative value/cumulative quantity. If the calculation method for an item was FIFO, the last evaluated price = the next open layer's item cost.
Items with no transactions within the specified date range are displayed with an opening balance.
You can export the report results to Microsoft Excel. For more information, see Toolbar.
A simulation based on the same selection criteria as a previous simulation but run at a later time yields consistent results even if changes have since been made to bills of materials or to the item master data fields Items per Sales Unit or Items per Purchase Unit. The application reads from the database the historical bill of material or item master data that was valid at the respective transaction dates.
If one of the following combinations of methods applies for an item, the simulation run ignores any inventory revaluations done for that item:
Valuation Method on Inventory Tab of Item Master Data |
Calculation Method in Inventory Valuation Simulation Report |
---|---|
MAP |
FIFO |
FIFO |
MAP |
STD |
FIFO |
Child items are simulated according to the same logic as parent items.
Valuation Method on Inventory Tab of Item Master Data |
Report Selection Criteria |
Valuation Method Used for the Calculation |
---|---|---|
Parent item = MAP Child 1 = FIFO Child 2 = Standard |
Parent item selected Calculation method = FIFO |
Parent item = FIFO Child 1 = FIFO Child 2 = FIFO |
Parent item = MAP Child 1 = FIFO Child 2 = Standard |
Parent item selected Calculation method = Based on Item Definition |
Parent item = MAP Child 1 = FIFO Child 2 = Standard |
If the simulation run ends with errors or warnings, you can view them in a message log.
The report results are stored in the following tables: SITM, SITW, SIVL, SIVL1, SIVQ, SIVE, SIVK, OISL.